Compulsory Jobs Guarantee

Nick de Bois Excerpts

Wednesday 11th February 2015 Commons Chamber

[Stephen Timms]

I will make a little more progress and then I will gladly give way again.

The Government would cover the costs to employers of paying national minimum wage and national insurance for a 25-hour week plus £500 per employee to help businesses with training, admin and set-up costs. In return, employers would be expected to provide training and development for those taking part and show how the jobs were additional—not replacing existing jobs and not leading to somebody else losing their job or seeing a reduction in hours.

[Nick de Bois (Enfield North) (Con)]

Given the right hon. Gentleman’s faith in the private sector in rallying to his scheme, is he not perturbed by the Institute of Directors saying that it

“does not bear much scrutiny”?

It continued:

“Wage subsidies for employers are not the source of sustainable jobs.”

With that in mind, will he place in the Library or share with the House how many companies have come forward to express their delight at the scheme?

[Stephen Timms]

I can answer that very directly: 5,000 employers are taking part in the Jobs Growth Wales scheme. The Federation of Small Businesses in Wales is a champion. I simply contrast the quote given by the hon. Gentleman with the experience of those on the ground, including the FSB.

--- Later in debate ---

[Nick de Bois (Enfield North) (Con)]

With some skilful editing, I shall proceed, Mr Deputy Speaker, and it is a pleasure to proceed after the hon. Member for Banff and Buchan (Dr Whiteford).

I would like quickly to set the scene in Enfield North, where, I am pleased to say, we have seen unemployment down by 42% and youth unemployment down by 53%. We are even making progress among the over-50 cohort, where unemployment is down by 18%. It is worth highlighting something that has not been sufficiently talked about in this debate—that the number of VAT and PAYE businesses registered in Enfield North has grown by 15% since 2010, while we have had a massive change across the borough of Enfield in start-ups. That is something that will play an ever-increasing role in dealing with the continuing challenge of unemployment.

Having set the scene and speaking as an employer who started out with a great idea in a pub that turned into a business for over 25 years, let me say that we have been bandying statistics across the Floor of the House pretty much all day and that I have had the pleasure of employing people, but also been through the difficulties—frankly, the agonies—for the employer and still more for the employee of having to let people go in difficult times. We should always remember that unemployment is never a price worth paying; it is an extremely difficult situation.

I think there is a difference between the parties on dealing with unemployment. I do not believe it is the role of Governments to create jobs, but it is the role of Governments to create and set the conditions for employment to thrive. That is perhaps where we divide in many respects. Any employer is unlikely to be wooed by a bit of a sub for someone on a job for a period of time. The employer wants to take people on so that his organisation or sector can profit, and wants jobs to be sustainable in a sustainable business. Employers look to the Government to set those macro-economic conditions.

Where should the Government’s emphasis be in trying to help deliver the conditions for employment? Frankly, it should be focused on the area of reducing tax. One of the absurdities I felt we got away with at the beginning of this Parliament was the jobs tax—in many ways, one of the most hideous of taxes. It taxed an employer for wanting to employ someone, when the Government are there to help, not hinder, employing people.

We must understand the massive role we have in welfare reform. Welfare reform is not about cutting costs as much as it is about leveraging and helping people back into work. That is why making work pay is a philosophy with which an employer and an employee would agree—as, I am sure, would Government accountants. Fundamentally, employers know there is a skills gap at the moment in the UK, and this partly explains some of the stubborn youth unemployment figures. We have to remember that these are crucial and must be dealt with. We have to deal with that problem and the soft skills. By creating the right conditions, we will see employment go down even further

In my last 40 seconds, I can draw the Minister’s attention to 26 February, when my fourth jobs fair will take place. It has a special focus on the over-50s for the first time. We are being supported by companies that want people to come and work in sustainable jobs. Crossrail, TFL, Ardmore Construction, Barclay and local successes such as Kelvin Hughes, Risual and even Stansted Airport are coming because they want to employ people on a long-term sustainable basis—not through artificial subsidies that, however well-intentioned, are set to fail in terms of long-term delivery.